Daily Price Outlook
The ETH/USD ended the day at $3956.35, having reached a high of $4107.85 and a low of $3955.35. The ETH/USD pair dropped on Thursday and reversed course after rising for two consecutive days amid the prevailing market sentiment. As per the data from the tracking website Watch the Burn, around $800,000 worth of the second-largest cryptocurrency by market capitalization is currently being burned every hour. Every 60 minutes, around 202 ETH are burned, which means nearly $31 million worth of the cryptocurrency, 7642 ETH, are burned in a day. The net supply reduction for ETH stands at 56.02%.
Since ETH's burning mechanism was introduced, about $4.8 billion worth of ETH has been burned, while its total net issuance was $2.3 billion. The supply reduction helps Ethereum's inflation rate drop and could make the cryptocurrency deflationary if the burn rate gets high enough. Following the Fed's rate announcement on Wednesday, Ethereum reclaimed the $4000 level as the price of altcoins improved. In addition, the Federal Reserve released that it will not change interest rates, causing the primary cryptocurrency to react immediately. When ETH reclaimed its $4K level, the whole cryptocurrency market cap gained about $150 billion in a single day.
The Bank of Thailand was planning on introducing regulations on cryptocurrencies to reduce the risks associated with them added a negative impact on the whole market, and the second-largest cryptocurrency, ETH, also followed the trend and dropped on Thursday. Meanwhile, the low trading volume ahead of the holiday season also kept the price momentum subdued on Thursday, and the cryptocurrency ETH/USD remained on the back foot.
ETH/USD Intraday Technical Levels
Daily Technical Levels
Pivot Point: 4006.52
ETH/USD - Technical Outlook
On Friday, the ETH/USD is trading at the $3,925 level. Above the $3,850 and $4,000 resistance levels, Ethereum began a steady comeback wave. ETH has even surpassed the $4,050 mark and the 100 hourly simple moving average. However, the price could not rise beyond the $4,080 and $4,100 resistance levels. Before the price began to fall, a peak was formed near $4,121. A move below the $4,050 and $4,000 support levels occurred.
On the hourly chart of ETH/USD, there was also a breach below a significant rising channel with support near $4,040. The pair is currently trading between $3,950 and the 100 hourly simple moving average.
The price fell below the 23.6 percent Fib retracement level of the bullish run from $3,650 to $4,121. On the upside, an immediate barrier is near the $4,040 mark. The next significant resistance is located near $4,080. A clear rise over the $4,080 mark and the recent higher could signal the commencement of a new uptrend in the short term.
The bulls' next target might be $4,120. Closing above $4,120 might lead to a rise towards $4,250.
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